Lotus in deep trouble, cuts huge chunk of workforce image

The Group Lotus Plc, a well-known British exotic sports car manufacturer, has announced it would move to fire up to 27% of its employees in order to further cut costs.

The Hethel, England-based company is best known for its lightweight sports car models, such as the Elise, or the fact that Tesla’s first electric car – the Roadster – was based on a Lotus model. Now the British maker, currently under the control of Malaysia’s DRB-Hicom Bhd. announced in a statement that it could give up 325 of the 1,215 people it employs through a restructuring strategy.

“We have worked very hard to avoid the need to make the proposal, but do believe that it is now essential,” Chief Executive Officer Jean-Marc Gales said in the statement. After that, “Lotus should be a leaner, more competitive organization, focusing on both producing class-leading sports cars and innovative engineering.”

Besides the usual voluntary retirements, the carmaker added it may be forced to resort to compulsory job reductions. Just like Aston Martin, Lotus is an independent company that can’t compete with its main sports-car rivals such as Porsche, Lamborghini and Ferrari. Unlike them, the British maker lacks the cash backing of a large conglomerate – an issue that prompted Aston Martin to enter an alliance with Daimler to source Mercedes-Benz AMG technology.

Via Bloomberg